Governor Cuomo, speaking at the annual awards ceremony for the Regional Economic Development Councils (REDC), reiterated his concerns about a plan he said mostly benefits the top 1 percent and could devastate the state's upstate economy.
"The most problematic provision eliminates the deductibility of state and local taxes. This is an arrow designed at the heart of the state of New York. Property taxes and state income taxes are what we have been fighting for seven years," he said.
"Gov. Cuomo predicted that the elimination of deductions could result in a 20 to 25 percent increase in property taxes and could force people to move out of New York State,” Assemblywoman Jenne said.
Assemblywoman Jenne noted the House bill passed by the House in November allowed some taxpayers to still file for a deduction of property taxes, but it’s capped at $10,000 while deductions for state and local income taxes and sales taxes would completely disappear.
She had also been by provisions in the House bill calling for the elimination of the student loan interest deduction and a provision that would treat graduate student tuition benefits as taxable income could end up hurting North Country.
"It's unfortunate the House and Senate leadership is trying to rush this legislation through before it has been properly vetted through the traditional hearing process. It appears some of the most egregious provisions in the House bill will be removed from the final legislation because lawmakers are being pressured as some details emerge. A transparent process would have resulted in legislation that focused on benefitting middle class and working families rather than the interests of the lobbyists for the GOP's top campaign contributors," Assemblywoman Jenne noted.
She also pointed out that she shared Gov. Cuomo's view that short-term federal income tax savings would result in reduced services at the state and local level, especially in local schools and a local tax burden shift to working families and the struggling middle class.
"I agree with Gov. Cuomo's characterization of the federal tax plan as an economic civil war, and I share his concerns. I worry about the impact increased property taxes and income taxes could have on North Country families already struggling to pay their taxes, and it will have a dramatic impact on our small businesses, local school districts, SUNY schools and our ability to maintain our aging infrastructure," Assemblywoman Jenne said.
"The passage of a federal tax plan that even a majority of the GOP representatives in the House of Representatives from New York State could not even support could drive our already struggling North Country economy into another recession," she said.
“It’s a plan that appears designed to drive families out of the North Country and out of the state because of a property tax burden that will be forced on their back by partisan federal elected officials. It is just plain wrong," Assemblywoman Jenne stressed.